Indonesia’s fintech and agritech sectors have experienced remarkable growth in recent years, attracting substantial investments and expanding access to digital financial services. However, alongside these advancements, several fraud cases have emerged, shaking investor confidence and exposing major flaws in corporate governance and risk management. The scandals surrounding eFishery, Investree, and TaniFund serve as a wake-up call, offering valuable lessons for both business owners and investors.
Understanding these cases is crucial for avoiding similar pitfalls in the future. Whether you are a startup founder, a business executive, or an investor looking for promising opportunities, recognizing warning signs and implementing stronger risk management strategies can prevent financial losses and reputational damage.
The eFishery, Investree, and TaniFund Fraud Cases: What Happened?

Each of these companies started as a promising venture in their respective industries, but issues related to financial mismanagement, lack of transparency, and weak regulatory oversight ultimately led to their downfall.
In the case of eFishery, allegations of financial misreporting and misallocation of funds raised concerns among investors. Despite its innovative business model in aquaculture technology, irregularities in financial projections and discrepancies in reported earnings led to scrutiny. The lack of transparency in fund distribution further escalated the situation, highlighting the need for corporate governance and accurate financial disclosures.
Meanwhile, Investree, a well-known peer-to-peer (P2P) lending platform, struggled with rising non-performing loans (NPLs) and borrower defaults. The root of the problem lay in the platform’s risk assessment, where loans were issued without thorough creditworthiness evaluations. The absence of proper borrower screening resulted in an increasing number of defaults, causing significant losses for investors who had placed their funds in the platform expecting stable returns.
TaniFund, a crowdfunding platform designed to support farmers through investor funding, faced similar issues. Many projects underperformed, failing to deliver the expected returns due to agricultural risks, poor management, and lack of financial transparency. Investors found themselves in a precarious position as fund allocations became unclear, leaving them uncertain about where their money had actually gone. These issues raised critical questions about how agritech startups handle financial accountability and investor relations.
Key Lessons for Business Owners

Fraud cases like these emphasize the importance of financial transparency, sustainable business growth, and robust risk management. One of the biggest mistakes that led to these failures was the lack of accurate financial reporting. Business owners must ensure that every financial transaction is recorded properly and disclosed to stakeholders with complete transparency. Conducting independent audits and maintaining regulatory compliance should be a standard practice to build trust and credibility.
A common trend among failed startups is their obsession with chasing high valuations instead of building a sustainable business model. Many companies focus too much on attracting investors and scaling aggressively while ignoring the long-term financial stability of their operations. Business owners should prioritize real profitability over inflated financial projections and ensure their revenue streams are solid before seeking excessive funding.
Risk management should also be embedded in business operations from the start. Startups, particularly in fintech and agritech, operate in high-risk environments where market fluctuations, operational inefficiencies, and economic downturns can impact profitability. Without a proper risk assessment framework, businesses leave themselves vulnerable to failure. Founders must establish internal risk mitigation strategies, compliance protocols, and contingency plans to safeguard their company’s longevity.
Critical Takeaways for Investors

Investing in startups and digital finance platforms offers high-reward potential, but as seen in these fraud cases, it also comes with significant risks. Investors must perform thorough due diligence before committing capital to any company. It is essential to analyze a company’s financial health, operational model, and past performance rather than relying solely on projections and marketing materials.
High-return promises should always be met with healthy skepticism. If an investment opportunity claims to offer exceptionally high profits with minimal risk, it is often a red flag. The fintech and agritech sectors, while innovative, remain volatile due to external factors such as regulatory changes, economic conditions, and operational challenges. Investors should always evaluate the feasibility of projected earnings and the risks associated with the business model.
Another key takeaway is the importance of diversification. Placing all investments in one company or sector significantly increases exposure to risk. The downfall of TaniFund, Investree, and eFishery highlights why spreading investments across different industries and asset classes can minimize losses and ensure financial stability. A well-diversified portfolio helps investors manage uncertainties and balance high-risk investments with safer alternatives.
The Role of Regulatory Authorities in Preventing Future Fraud
While business owners and investors hold significant responsibility in ensuring transparency and accountability, regulatory authorities also play a crucial role in maintaining market stability. The lack of strict oversight and enforcement allowed these fraud cases to escalate before corrective actions were taken. Stronger regulations and real-time monitoring mechanisms are needed to prevent similar failures in the future.
Governments and financial regulators should enforce stricter licensing requirements for P2P lending platforms, crowdfunding projects, and fintech startups. Implementing automated fraud detection systems, increasing financial reporting standards, and conducting regular audits can help identify early warning signs of corporate misconduct. Startups should also be required to disclose investor risks transparently rather than focusing solely on potential returns.
By strengthening regulatory frameworks, authorities can help create a more secure investment landscape that benefits both entrepreneurs and investors. This will reduce the chances of fraudulent schemes and enhance trust in Indonesia’s growing digital economy.
Conclusion
The fraud scandals involving eFishery, Investree, and TaniFund serve as a crucial learning experience for the business and investment communities. Entrepreneurs must commit to financial transparency, ethical governance, and sustainable business growth to avoid similar pitfalls. Meanwhile, investors must approach every opportunity with due diligence, risk assessment, and portfolio diversification to minimize financial exposure.
Regulatory bodies also bear the responsibility of tightening compliance measures and enforcing market stability to prevent future fraudulent schemes. The lessons learned from these cases should serve as a foundation for building a safer, more transparent, and responsible digital business ecosystem in Indonesia.
For businesses looking to strengthen their financial integrity, risk management, and investor relations, Noethera offers expert consultation and tailored solutions. Get in touch with us today to learn how we can help your company navigate complex financial landscapes while ensuring long-term sustainability.